Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its offerings include financial management, spend management, expense management, human capital management, and planning applications, as well as supply chain and inventory solutions for healthcare organizations and tools for managing the student and faculty lifecycle. The company serves industries such as professional and business services, financial services, healthcare, manufacturing, media, education, government, technology, retail, and hospitality, selling through its direct sales organization. Workday was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. It was incorporated in 2005 and is headquartered in Pleasanton, California.
Workday's AI Growth Story Faces Legal and Sector Headwinds
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Q1 Revenue Beat and Strong Billings Workday reported Q1 revenue of $2.54 billion, up 13.5% year on year and beating estimates, with billings also ahead. This shows the core business is still growing, which supports the stock's value even as shares have fallen sharply this year.
This is a new earnings report that directly affects investor confidence in Workday's financial health.
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California AI Bias Lawsuit Proceeds A federal judge ruled Workday must face a class-action lawsuit claiming its AI hiring tools discriminated against applicants. This creates legal risk and potential liability, which could weigh on the stock as it raises uncertainty and possible costs.
This is a new legal development that introduces regulatory and reputational risk for Workday.
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Composable HCM Market to Triple by 2031 A new report projects the composable HR platform market will grow from $10.8 billion to $27.4 billion by 2031, driven by enterprises moving away from monolithic systems. Workday is well-positioned as a leading vendor, which could boost future demand.
This market forecast highlights a long-term growth opportunity for Workday's modular offerings.
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AI Fears Hit Software Stocks Workday shares fell 4.4% as part of a broader sell-off in software stocks, driven by fears that AI agents will erode subscription revenue models. This reflects ongoing market skepticism about traditional enterprise software, which could keep pressure on the stock.
This captures a key negative sentiment driver affecting Workday's valuation.
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Workday's AI Surge Meets Growth Slowdown and New Rivals
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AI drives record new contract value Workday's AI products generated over $100 million in new annual contract value, more than 25% of all new ACV, with AI annual recurring revenue near $600 million, up over 200% year-over-year. This shows AI is becoming a real revenue driver, pushing the stock up.
This is the core new positive force behind Workday's recent earnings-driven jump.
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Early fiscal 2028 growth target signals slowdown Workday gave an early fiscal 2028 subscription growth target of about 11%, down from the current 13-14% pace. That suggests the company's growth is slowing, which weighs on the stock even as current results beat expectations.
This is the main new counterweight that explains why the stock didn't hold its post-earnings gain.
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AI-native startup Rillet challenges incumbents Rillet, a private AI-native ERP startup, is pitching real-time continuous accounting to replace batch-processed systems from Workday, Oracle, and SAP. Its backer says rivals would need 4-5 years to catch up, highlighting a long-term competitive threat to Workday's core market.
This is a new competitive threat that could pressure Workday's long-term pricing and market share.
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State government wins show public sector traction Workday reported large state government go-lives, including Georgia's 70,000-employee rollout, as governments replace legacy HR and finance systems. This deepens its public sector presence and supports future subscription revenue, though it reinforces an existing narrative rather than creating a new one.
This is a new demand signal that supports the bull case, though it is more incremental than the AI and growth news.
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Workday swings on buyout talk, AI growth, and slower guidance
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IBM's weak results signaled budget shift from software to hardware IBM's disappointing results early in the quarter suggested companies are spending more on hardware and less on software, which dragged Workday shares down 5% and raised fears about demand.
This was a key early event that pushed the stock down and set the tone for the quarter.
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Morgan Stanley downgraded Workday on software-sector concerns Morgan Stanley downgraded Workday, adding to worries about the software sector. A downgrade means a major analyst lowered their rating, which can make investors more cautious and pressure the stock.
This analyst action contributed to negative sentiment and is new information for the period.
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Silver Lake buyout talks valued Workday at $240–$250 per share Reuters reported that private equity firm Silver Lake was in talks to buy Workday at $240–$250 per share, sending the stock surging. However, the talks could still fall apart, so the gain may not last.
This was a major positive catalyst that drove a sharp price increase during the quarter.
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Strong AI momentum but slower growth guidance and new competition Workday reported over $100 million in new AI contract value and roughly $600 million in AI annual recurring revenue, up over 200%. But it guided fiscal 2028 growth to about 11%, down from 13–14%, and AI-native startup Rillet poses a long-term threat.
This captures both the positive AI traction and the negative guidance and competitive threat that balance the outlook.
News & notes movingWDAY
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Cloud & Digital Infrastructure▲
Workday launches in UAE as shares slip over 3%
Workday announced on Thursday that it has launched in the United Arab Emirates. Angelique De Vries-Schipperijn, President, EMEA, Workday, said in a statement that the UAE is a key market in Workday's growth strategy, with organizations pursuing transformation against some of the world's most ambitious national agendas, and that they need technology that helps them move faster, adopt new ways of working, and show clear results while maintaining the trust and control large, regulated organizations require. Workday shares slipped more than 3% in midday trading, in-line with a broader market sell-off.
Citi downgraded Moderna to Sell from Neutral, sending shares down 6.88% in premarket trading, with analyst Geoff Meacham calling the valuation "unjustifiable" after a Phase 3 win for the personalized cancer shot intismeran autogene developed with Merck. Workday said it is cutting 2.5% of its workforce, mainly in its Product and Technology team, according to a Form 8-K filed with the U.S. Securities and Exchange Commission, and shares slipped 1.23% in early trading. Conagra Brands reported fiscal first-quarter adjusted earnings of $0.41 per share, topping the $0.28 consensus estimate, on revenue of $2.60 billion, roughly in line with the $2.59 billion expected, and shares rose about 3% in premarket trading. SpaceX shares slipped 0.09% in early trading after Anthropic agreed to pay the company up to $84.5 billion to use its computing capacity through 2029, according to Reuters, which viewed a confidential initial public offering prospectus, a figure far larger than the agreement that surfaced in May.
Teem Partners With Workday to Bring AI Supplier Intelligence to Spend Management
Teem Finance, Inc., an AI-native procurement intelligence company, announced a partnership with Workday to integrate its supplier insights into Workday Strategic Sourcing and Workday Contract Lifecycle Management. As a Workday Partner, Teem will bring AI-powered supplier research and discovery, cost deflection guardrails, category management intelligence, and faster data-backed evaluations to the Workday ecosystem. The integration lets supplier and contract context flow directly from Workday into Teem with no manual data loading, and the Workday Strategic Sourcing integration uses Teem data to power supplier discovery and cost deflection use cases. Customers have used Teem's capabilities to reduce redundant software spend by 20% to 35% and cut sourcing cycle times in half. Teem founder and CEO Ben Mappen said joint customers can see what they already own, discover the right suppliers in minutes instead of weeks, and stop redundant spend before a purchase order is created. Teem will host a session at Workday Rising, Oct. 12-15 in Las Vegas.
Cloud & Digital Infrastructure › Horizontal SaaS Competition
Artificial Intelligence › AI Applications & Copilots Competition
Teem Finance, Inc. · Demand · Positive Teem's supplier intelligence is being integrated into Workday's ecosystem as a Workday Partner, expanding distribution of its procurement capabilities.
WDAY · Demand · Positive Workday partners with Teem to integrate AI supplier intelligence into Workday Strategic Sourcing and Contract Lifecycle Management, adding capabilities for its customers.
Workday Launches AI-Powered Total Benefits Platform
Workday, Inc. has launched Total Benefits, a new artificial intelligence-powered solution that brings employees' health, financial and wellbeing programs together in one place. The platform combines four key capabilities: Workday Wellness, Benefits Guidance through Self-Service Agent, Life and Money Solutions, and Benefits Administration Services. Workday Wellness provides HR and benefits leaders real-time insights into program usage, performance and costs, and early adopters reported a 75% reduction in the time needed to onboard new providers. The services include AI-powered Benefits Guidance through Self-Service Agent, which helps employees compare plans, enroll in coverage, add dependents and update beneficiaries, while the platform also offers financial services such as earned wage access, direct deposit and employment and income verification. Through Benefits Administration Services, partners including Strada and Benefit Harbor help HR teams with plan setup, system migration and ongoing administration. Workday faces competition from Oracle Corporation and Automatic Data Processing, Inc., both of which are expanding their own enterprise AI capabilities.
Block Expands Square and Cash App Reach With Apple and Workday Deals
Block is expanding the reach of its Square and Cash App ecosystems through separate integrations with Apple and Workday. Square has introduced an Apple Business integration that lets eligible sellers manage and synchronize business information across Apple Maps, Siri AI, Apple Wallet and other Apple services directly from Square Dashboard, with updates to branding, logos, operating hours, addresses and phone numbers synced automatically; Square noted that claimed Apple Maps locations receive 30% more views, while action links have generated 31% higher click-through rates. The integration is available across Square's eight supported markets, including the United States, Canada, the United Kingdom and Australia, and follows recent integrations with AI platforms such as ChatGPT and Claude. Separately, Cash App has partnered with Workday to simplify direct deposit enrollment for U.S. employees, allowing eligible workers to select Cash App as their direct deposit destination through Workday's Enhanced Direct Deposit experience beginning Oct. 1. Cash App had 9.4 million Primary Banking Actives in the second quarter of 2026, up 17% year over year. Together, the partnerships highlight Block's strategy of embedding its products into widely used consumer and enterprise platforms.
Digital Finance & Tokenization › Digital Banking & Neobanks ▲Demand
Digital Finance & Tokenization › Payments Modernization & Rails ▲Demand
XYZ · Demand · Positive Block's Square and Cash App ecosystems gain reach via Apple Business and Workday integrations, embedding its products into widely used consumer and enterprise platforms.
AAPL · Demand · Positive Square's Apple Business integration embeds seller business info across Apple Maps, Siri, Wallet and other Apple services, expanding Apple's platform usage by merchants.
WDAY · Demand · Positive Workday partners with Cash App to offer direct deposit enrollment through its Enhanced Direct Deposit experience, adding a new capability for U.S. employees on its platform.
Workday Launches AI Total Benefits Platform With New Partner Integrations
Workday has rolled out its AI-driven Workday Total Benefits platform and announced multiple integrations with partners including Experian, Checkr, Block's Cash App, OneSource Virtual, Tabulera, and Neeyamo, expanding its capabilities across benefits, payroll, and income verification. Together, these partnerships turn Workday further into a unified hub for payroll, benefits, and financial services data, potentially deepening customer reliance on its ecosystem and reducing administrative friction for HR teams. Workday's narrative projects $13.8 billion revenue and $2.1 billion earnings by 2029, assuming 10.7% yearly revenue growth and an earnings increase of about $0.8 billion from $1.3 billion today. The most cautious analysts saw Workday's revenue only reaching about US$13.0 billion and earnings around US$1.8 billion by 2029, expecting slower growth and tighter margins than today's headlines might suggest. Workday's forecasts yield a $208.68 fair value, an 8% upside to its current price.
Generac Soars 19% on $2.4 Billion Amazon Data Center Generator Deal
Generac struck a deal with Amazon to supply backup power generators for its data centers, with initial deliveries expected to total $2.4 billion between 2027 and 2028, and also granted Amazon the right to buy up to $340 million worth of its stock. Generac shares soared 19% on the news, while Amazon's stock moved 1.3% higher. Fluence Energy shares tumbled 14% after the battery storage maker cut its full-year guidance, now expecting $2.4 billion in revenue for 2026 versus its prior guidance of $2.9 billion to $3.1 billion, and anticipating a loss of $200 million before interest, taxes, depreciation and amortization, more than its previous guidance range of $30 million loss to $10 million EBITDA. Workday rose 5% after CNBC's David Faber reported that efforts to gain financing for a bid to take the cloud-based human resources software platform private are continuing, citing unidentified sources. Tower Semiconductor rose almost 9% after agreeing with privately-held New Photonics to a high-volume shipment of laser-integrated optical engines designed to meet growing demand for high-bandwidth, energy-efficient optical interconnects in AI infrastructure, and Vital Farms climbed 9% after Axios said the Austin, Texas-based pasture-raised egg and butter producer is exploring strategic alternatives, including privatization.
FLNC · Capital · Negative Fluence cut its full-year guidance to $2.4B revenue for 2026 and a wider $200M EBITDA loss, sending shares down 14%.
GNRC · Demand · Positive Generac won a $2.4B Amazon deal to supply backup power generators for data centers, with deliveries in 2027-2028.
VITL · Capital · Positive Vital Farms is exploring strategic alternatives including privatization, per Axios.
WDAY · Capital · Positive Financing efforts continue for a bid to take Workday private, per CNBC's David Faber.
AMZN · Demand · Positive Amazon struck a deal with Generac for backup power generators for its data centers, supporting its data center buildout.
NewPhotonics · Demand · Positive New Photonics agreed to a high-volume shipment of its laser-integrated optical engines to Tower Semiconductor, meeting AI infrastructure demand.
Workday Named a Leader in Inaugural 2026 Gartner Magic Quadrant for Workforce Management Technology
Workday has been named a Leader in the inaugural 2026 Gartner Magic Quadrant for Workforce Management Technology, the company announced. Workday's workforce management suite brings time tracking, absence management, scheduling, and labor optimization together within Workday Human Capital Management, giving frontline leaders one system to manage labor costs, compliance, schedules, and time. The suite includes agentic capabilities powered by Sana, Workday's agentic experience, including a Workforce Management Agent that automates schedule changes, time tracking, shift swaps, and demand-based staffing; early-adoption customers saw up to a 90% reduction in time spent managing shift schedule changes, a 65% improvement in process automation on average, and a 75% reduction in manual time entry errors. Automotive services retailer Valvoline cut the time managers spend generating weekly schedules from more than two hours to about 15 minutes, while health and fitness company Life Time reached 95% mobile app adoption after rolling out Workday Scheduling, saving managers over 50,000 hours each year and realizing $1 million in annual labor savings and a 50% reduction in overtime costs. The Gartner report, by Sam Grinter, Ranadip Chandra, Kelsie Marian, and Anand Chouksey, was published on 14 September 2026.
Artificial Intelligence › AI Applications & Copilots ▲Competition
WDAY · Technology · Positive Workday named a Leader in the inaugural Gartner Magic Quadrant for Workforce Management Technology for its WFM suite and agentic capabilities.
LTH · Demand · Positive Life Time cited as a Workday Scheduling customer achieving 95% mobile adoption, 50,000 hours saved, and $1M labor savings.
VVV · Demand · Positive Valvoline cited as a Workday customer cutting weekly schedule generation from over two hours to about 15 minutes.
Workday Appoints Sarah Kennedy Ellis as Chief Marketing Officer
Workday has named Sarah Kennedy Ellis as its Chief Marketing Officer, effective immediately. Ellis previously held senior marketing roles at Google and Adobe, bringing large scale enterprise software and cloud marketing experience to the role. Her remit covers Workday's global marketing, brand narrative and go to market messaging for its AI focused product portfolio. The appointment reinforces the existing Workday narrative that management is trying to turn strong AI product uptake into a clearer commercial story, and touches on a flagged risk that execution around AI and newer offerings needs clear messaging to address questions about slower projected revenue growth and competitive pressure in HCM and ERP. Workday, which provides enterprise cloud applications to large organisations in the US and internationally, has a market cap of $46.8b.
Workday Q2 Beats, AI Gains Raise Fiscal 2028 Stakes
Workday reported a second-quarter earnings beat with faster AI adoption and a higher margin outlook, raising the stakes for fiscal 2028 growth. Revenues rose 12.8% year over year to $2.65 billion, beating the Zacks Consensus Estimate of $2.63 billion, while non-GAAP earnings of $2.75 per share topped the consensus of $2.62. Subscription revenues increased 13.9% to $2.47 billion, about 93% of total revenues, with roughly 60% of that growth from existing customers. AI products generated more than $100 million of new annual contract value, over 25% of the total, and agentic AI annual recurring revenues approached $600 million, up more than 200% year over year. Management raised its fiscal 2027 non-GAAP operating margin outlook to 31% and maintained operating cash flow guidance of $3.45 billion, while targeting about 11% subscription revenue growth in fiscal 2028 with margin expansion of at least two percentage points.
Adobe Drops 7% on Insider CEO Pick Ahead of Earnings
Adobe shares fell 7% to $264.81 on Friday after the company named insider Anil Chakravarthy as its next president and CEO, effective December 1, succeeding Shantanu Narayen, who becomes executive chair. The internal pick, announced days before Adobe's fiscal third-quarter earnings report on September 10, raised doubts about the company's AI strategy, with the stock already down 18% year to date. Workday also slid 4% to $199.30 in sympathy, despite raising its full-year subscription guidance after a strong quarter. Barclays raised its Adobe price target to $295 from $250 while maintaining an Equal Weight rating, reflecting a split view on the company's prospects. Adobe's Q2 FY2026 results showed AI-first annual recurring revenue tripling year over year to exceed $500 million, with total ARR at $27.1 billion, and the company guided Q3 revenue to $6.67 billion to $6.72 billion with non-GAAP EPS of $6.05 to $6.10.
Workday Wins Big State Government Go Lives as AI Tools Spread
Workday has reported strong adoption among U.S. state and local governments replacing legacy HR and finance systems with its cloud platform, with large deployments in states including Georgia and Ohio highlighting new public sector clients and recent go lives across core payroll, HR, and finance functions. The company is rolling out AI-driven automation and agents to handle tasks such as payroll processing, workforce management, and financial workflows for government users. The scale of these projects signals deeper penetration into the public sector market at a time when many governments are modernizing outdated technology. Workday, a US-based software company with a market cap of $47.6 billion, provides cloud applications for HR and finance, positioning it directly in the path of governments replacing older on-premises systems. For investors, this wave of state and local government wins reinforces the existing narrative catalyst around AI-driven adoption, rather than creating a new story, with governments standardizing critical HR and finance work on Workday's platform and already using agents like Self Service Agent, Payroll Agent, and Financial Audit Agent in live environments. The next marker to watch is Workday's reported subscription backlog and AI-related expansion revenue in upcoming quarterly results, especially as more large projects like Georgia's 70,000-employee rollout move from deployment into ongoing use.
Workday Beats Estimates but Freedom Broker Downgrades to Hold
Workday reported a flawless second quarter for fiscal 2027, beating estimates, yet Freedom Broker downgraded the stock from Buy to Hold with a price target of $200, up from $180. The company posted total revenues of $2.649 billion, up 12.8% year-over-year, with subscription revenues rising nearly 14% to $2.471 billion. Operating income grew to $313 million from $248 million, and AI annual recurring revenue approached $600 million. Management also announced a new $4.0 billion share repurchase authorization. Despite the strong quarter, the analyst cited concerns over limited near-term revenue acceleration, a deceleration in subscription revenue growth to about 11% in the second half of fiscal 2027 and fiscal 2028, and valuation already reflecting margin gains. The downgrade reflects that much of the upside is priced in, not a weak quarter.
AI Startup Rillet Challenges Oracle, SAP, and Workday with Real-Time ERP
Rillet, a private AI-native ERP startup, is challenging legacy software giants Oracle, SAP, and Workday by replacing batch-processed financials with real-time continuous accounting data. Co-founder and CEO Nicolas Kopp, appearing on CNBC with investor Roelof Botha, explained that Rillet's AI agents work 24/7 in the background, giving CFOs faster and more accurate financial information. Botha, who invested in May 2025, estimated that rivals would need 4 to 5 years to catch up, comparing the difficulty of replacing entrenched ERP systems to open-heart surgery. Rillet aims to fill a staffing gap in accounting, allowing teams to scale more leanly. The company's challenge underscores a broader industry shift toward AI-native architecture, where continuous processing may eventually outweigh the switching costs that have long protected incumbents.
BDO Canada partners with Workday to modernize HR and finance
BDO Canada has announced a partnership with Workday, Inc., the enterprise AI platform for HR, finance, and IT, to help organizations modernize critical business functions. As a Workday Sales and Services Partner, BDO will combine its business advisory and Human Resources Technology & Transformation expertise with Workday's platform to accelerate digital transformation and create greater business value. The partnership will offer advisory, implementation, and optimization services across Workday Human Capital Management, Financial Management, and Adaptive Planning, aiming to improve visibility and decision-making. Edward Charter, country manager for Workday Canada, noted that this builds on Workday's $1 billion, five-year investment in the Canadian market. Jesaiah Mills, Partner at BDO Canada, emphasized that clients seek solutions combining leading technology with trusted advisory expertise for meaningful transformation.
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WDAY▲
Bright Horizons Joins Workday Wellness Partner Program
Bright Horizons Family Solutions has been named a Workday Wellness partner, integrating its family care and education benefits into the Workday platform to simplify benefits administration and provide employers with greater visibility into program participation and impact. The collaboration enables employees to discover, enroll in, and access support directly within their existing Workday environment, while employers gain insights into utilization and the benefits' effect on wellbeing, productivity, retention, and career growth. Phil Barr, Chief Development Officer at Bright Horizons, emphasized that the partnership makes benefits easier to implement, measure, and access, delivering a more seamless experience for employees and better data for employers. Bright Horizons operates approximately 1,000 early education and child care centers across the United States, the United Kingdom, the Netherlands, Australia, and India, serving more than 1,450 leading employers.
Marvell Plunges on Weak Guidance; Gap, Workday Surge
Marvell Technology Inc.'s shares plunged 10.3% after the company provided weak guidance for third-quarter fiscal 2027 adjusted gross margin. In contrast, Workday Inc. climbed 5.8% after posting first-quarter fiscal 2027 adjusted earnings of $2.75 per share, surpassing the Zacks Consensus Estimate of $2.62 per share. The Gap Inc. jumped 12.9% after reporting second-quarter 2026 adjusted earnings of $0.52 per share, outpacing the Zacks Consensus Estimate of $0.50 per share. Meanwhile, MINISO Group Holding Ltd.'s shares tumbled 4.4% after reporting second-quarter 2026 adjusted earnings of $0.26 per share, lagging the Zacks Consensus Estimate of $0.31 per share.
Workday Stock Soars on Strong Q2 Results and AI Growth
Shares of Workday jumped 5.8% in afternoon trading after the company reported second-quarter financial results that beat Wall Street expectations, driven by strong subscription revenue growth and accelerating artificial intelligence adoption. The company reported revenue of $2.65 billion, up 12.8% year over year, and adjusted profit of $2.75 per share, topping estimates of $2.64 billion and $2.61 per share. Subscription revenue rose 13.9% to $2.47 billion, exceeding guidance, while AI solutions drove over 25% of new annual contract value, with more than 5,500 customers deploying at least one organic AI agent. The company raised the lower end of its full-year subscription revenue guidance to between $9.94 billion and $9.95 billion, representing 13% growth, and authorized a new $4 billion share repurchase program after completing its previous $5 billion buyback. The stock closed at $204.70, up 4.6%.
In extended trading, Gap shares jumped about 7% after the company announced Michael Francis will become CEO of Old Navy starting Nov. 2, succeeding Haio Barbeito, and reported second-quarter adjusted earnings of 52 cents per share, beating the LSEG consensus of 48 cents. Marvell Technology was marginally lower despite beating expectations with adjusted earnings of 94 cents per share on $2.74 billion in revenue, versus the anticipated 93 cents and $2.71 billion. Workday dropped 5.7% after its current-quarter subscription revenue outlook only matched analyst expectations, though it surpassed estimates on both top and bottom lines for the second quarter. Rubrik tumbled 10% despite beating analyst expectations for the second quarter and hiking its guidance, reporting adjusted earnings of 20 cents per share on $427 million in revenue, versus the expected 4 cents and $396 million. Autodesk slid 6% after its earnings projections disappointed, with third-quarter adjusted earnings guidance of $3.04 to $3.09 per share below the $3.14 consensus, and full-year guidance of $12.52 to $12.60 per share versus the $12.60 anticipated. Elastic N.V. surged 15% after full-year guidance topped expectations, with adjusted earnings of $3.29 to $3.37 per share on revenue of $1.998 billion to $2.010 billion, beating the $3.24 and $1.99 billion estimates. SentinelOne shed almost 7% after issuing a weak current-quarter and full-year earnings outlook, overshadowing a stronger-than-expected second-quarter report.
Enterprise Software Stocks Rally as Salesforce CEO Declares End of SaaSpocalypse
Enterprise software and cybersecurity stocks rallied sharply on Thursday, driven by strong earnings and a shift in the AI narrative. The iShares Expanded Tech-Software Sector ETF (IGV) surged over 6%, on track for its largest single-day gain since April 9, 2025, when it jumped 11.7%. The rally began after Salesforce and CrowdStrike reported better-than-expected second-quarter results, with Salesforce CEO Marc Benioff declaring, "This nonsense of this SaaSpocalypse, I think it's time for it to stop." ServiceNow surged 9%, Workday rose nearly 4%, and Adobe and Autodesk each climbed 6%. Cybersecurity names led the gains, with CrowdStrike up 18%, Okta rocketing over 25%, and SailPoint surging nearly 14%. Palantir increased 4% as its Maven Smart System is on track to generate at least $1 billion in annual recurring revenue, while UiPath climbed nearly 9% ahead of its earnings report.
Workday Q2 2027 Earnings Preview: EPS and Revenue Estimates
Workday is scheduled to announce its Q2 earnings results on Thursday, August 27th, after market close. The consensus EPS estimate is $2.61, up 18.1% year-over-year, and the consensus revenue estimate is $2.64 billion, up 12.3% year-over-year. Over the last two years, Workday has beaten both EPS and revenue estimates 100% of the time. In the last three months, EPS estimates have seen 19 upward revisions and 13 downward, while revenue estimates have seen 27 upward and 2 downward. Recent analysis from contributors suggests the momentum is behind the company, but it needs to execute.
Intuit, Zoom, Kohl's Lead Premarket Declines; SolarEdge, Semtech Rise
Intuit shares plunged 11% in premarket trading after the financial technology platform issued fiscal 2027 revenue guidance of $23.279 billion to $23.512 billion, below the $23.7 billion analysts expected, though its fiscal fourth-quarter earnings and revenue beat estimates. The disappointing outlook dragged other software stocks lower, with the iShares Expanded Tech-Software ETF down over 1%, ServiceNow off more than 2.5%, and Workday and Salesforce each down 2%. Zoom Communications fell 7% after its third-quarter earnings per share guidance of $1.46 to $1.48 came in short of the $1.50 FactSet consensus. Kohl's declined 5% after reporting a 0.9% drop in second-quarter comparable sales, worse than the 0.6% decline expected, but the retailer raised its full-year outlook, partly due to $150 million in tariff refunds, and restarted share buybacks of up to $100 million in 2026. On the upside, J.M. Smucker climbed 5.6% after fiscal first-quarter revenue of $2.22 billion topped the LSEG consensus of $2.13 billion, SolarEdge jumped nearly 7% following a UBS upgrade to buy on a new FCC policy, and Semtech rose more than 5% after beating earnings estimates with adjusted EPS of 71 cents versus 61 cents expected. Box gained over 2% on revenue beat, while Boston Scientific fell more than 3% after disclosing a cybersecurity incident causing product disruptions, and SAP dropped almost 4% after a UBS downgrade to neutral on slow agentic AI delivery.
Workday Seen as Strong Pre-Earnings Bet Before August 27
Workday enters its August 27 earnings report with a 91% beat probability, four straight EPS beats, and Silver Lake buyout talks anchoring the stock. The company guided Q2 fiscal 2027 subscription revenue to approximately $2.455 billion, growth of 13%, and CRPO growth of 13.5% to 14.5%, while new ACV from agentic AI products grew more than 200% year over year, approaching $500 million in ARR. A forward P/E of 18 and PEG of 0.75 reframe Workday as reasonably priced, with free cash flow yield at 7.00% and fiscal 2027 free cash flow guided to $3.180 billion, growth of 15%. Workday's 14% subscription revenue growth outpaces Salesforce, while 97% gross revenue retention and a pure cloud model give it an edge over Oracle. Shares are up 39.77% over the past month, and the average one-week post-earnings move is +7.83%.
Nvidia earnings and software results headline week of August 24th
Nvidia's second-quarter earnings take center stage on Wednesday, August 24th, with Wall Street analysts at Stifel and Oppenheimer expecting the AI chip giant to beat estimates and raise its outlook. Investors will also watch a packed slate of software earnings from Salesforce, CrowdStrike, Workday, Zoom, and Intuit, with Salesforce seen as a key test of corporate software spending and whether AI investment is translating into stronger growth. Attention then turns to Jackson Hole on Friday, where Fed Chair Kevin Warsh is expected to deliver remarks, and markets will listen for clues on the path for interest rates and how the Fed plans to tackle inflation.
Workday Launches AI Research Unit to Boost Enterprise AI
Workday has launched Workday AI Research, a dedicated technical research team focused on developing reliable, trustworthy and efficient enterprise artificial intelligence. The initiative aims to address key challenges associated with deploying AI agents across business operations, including memory, accuracy, privacy, explainability and governance. Workday's researchers are focusing on areas such as AI memory, multi-agent collaboration, recommendation systems, AI training and resource optimization, and the company has introduced an AI Research PhD Fellowship offering $50,000 in annual funding. Recent research found that a selective AI memory system improved precision by 12%, overall quality by about 8% and speed by around 31%, while multiple specialized AI agents increased accuracy by 5.8%. Workday faces competition from Oracle and ADP, which are also expanding enterprise AI capabilities through Oracle Cloud Infrastructure and ADP Assist.
Silver Lake's Workday buyout talks could lift software stocks
Analysts and investors viewed U.S. private equity giant Silver Lake's talks to acquire Workday, a provider of human resources and financial management software, as a sign of confidence in the software industry's growth prospects. After Reuters reported on the 13th that discussions were progressing, Workday shares surged about 18 percent that day, pushing its market capitalization above 51 billion dollars. Brian Mulberry of Zacks Investment Research noted that if Silver Lake takes Workday private at a substantial premium, it would be one of the strongest pieces of evidence supporting the view that traditional enterprise software has been overly pessimistically assessed because of AI. Morgan Stanley's analyst team said that if the acquisition goes through, it would affirm the view that Workday has strong competitive advantages and significant growth opportunities in automating back-office operations, and could help restore confidence among financial sponsors in software investments and potentially trigger additional buyout proposals. In European markets on the 14th, SAP led software stocks higher, while in the previous day's U.S. session, Salesforce, Adobe, and ServiceNow rose between 1.9 and 4.5 percent.
Workday's $51 billion takeover talks could reset the software trade
Workday shares jumped about 18% after Silver Lake was reported to be considering an acquisition of the human-resources and financial-management software company, lifting its market capitalization to more than $51 billion. The company generated $9.55 billion of revenue in fiscal 2026, up 13.1%, with subscription revenue rising 14.5% to $8.83 billion, and first-quarter fiscal 2027 revenue climbed another 13.5% to $2.54 billion. A hypothetical $227-a-share offer would value Workday at nearly $53.8 billion, potentially ranking among the biggest software takeovers ever, though talks could still break down and no deal has been announced. The report also lifted other software stocks, with SAP, Salesforce, Adobe, and ServiceNow gaining between 1.9% and 4.5%, and the S&P 500 Software & Services index up almost 25% quarter-to-date. Morgan Stanley analysts said a prospective acquisition would feed into the notion that Workday has a strong moat and a big chance to automate back-office tasks over time.
Workday Surges on Report of Potential $43 Billion Silver Lake Buyout
Workday shares jumped about 18% on August 13 after Reuters reported that private equity firm Silver Lake is in talks to acquire the human-resources and finance software maker in a deal that could value the company at around $43 billion. The stock rose as much as 26% to $220.50 intraday before being halted several times for volatility, marking its best trading day since 2016. Negotiations have been ongoing in recent months but no transaction is guaranteed, and Silver Lake may seek other investors to help finance what would be one of its largest technology investments to date. Workday has been under pressure in 2026, trading more than 40% below its 2024 peak amid concerns that AI could erode demand for traditional enterprise software, and co-founder Aneel Bhusri returned as CEO in February to guide the company through the AI transition. Short interest of 12.74% and a decline in hedge fund ownership from 70 funds in the fourth quarter of last year to 63 in the first quarter of this year reflect continued skepticism about a deal closing.
Workday, Diversified Energy, Aurora Cannabis lead week's key deals
Several major acquisition deals were reported across sectors this week. Workday soared 19% on a report that private equity firm Silver Lake is in talks to buy the software company. Diversified Energy is in advanced talks to acquire Elliott Investment Management-backed oil and gas company Birch Resources for more than $1.7 billion in cash. EQT Infrastructure offered to buy Cleanaway Waste Management in a deal that values the Australian listed firm at about A$6.9 billion, or $4.9 billion. H.B. Fuller said it received an unsolicited proposal from Ancora Holdings to buy its building adhesives solutions business for $1.1 billion to $1.2 billion in cash. Aurora Cannabis soared 21% after Curaleaf Holdings said it plans to make a $4 per share takeover bid, with Curaleaf rising 6.7%. H&R Real Estate Investment Trust agreed to be acquired by GO Residential Real Estate Investment Trust and a consortium including Blackstone, Crestpoint, PSP Investments and a company controlled by members of the family of H&R CEO Tom Hofstedter in a deal valued at about C$6.7 billion, including assumed debt. Israeli AI startup Decart is in advanced talks to be sold to a major tech firm for $6 billion to $7 billion. Jazz Pharmaceuticals announced it will acquire privately held Actio Biosciences for $820 million upfront and up to $500 million in potential milestones.
Intel prices $20B stock offering; Super Micro, Workday surge
Intel priced an upsized $20 billion public stock offering this week, selling over 210 million shares at $95 each and expecting net proceeds of about $19.7 billion to fund AI-related growth opportunities. Super Micro Computer closed 19% higher on Wednesday after issuing fiscal first-quarter guidance well above Wall Street forecasts, while Lumentum rose 14% on strong fiscal fourth-quarter results and outlook. Workday jumped nearly 18% on Thursday after Reuters reported private equity firm Silver Lake is in talks to buy the software company, with Needham analysts estimating a potential takeover price of $240 to $250 per share. NVIDIA confirmed it is working with a consortium of lenders including Apollo Global Management, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to raise $500 billion for AI infrastructure, signing a memorandum of understanding to establish first-of-their-kind compute financing platforms at global scale. AMD filed a mixed shelf debt offering that could raise up to $5 billion in four tranches, and Argus upgraded Sandisk to Buy from Hold with a $1,600 price target.
Workday could be acquired by private equity firm Silver Lake, with analysts suggesting a takeover value of roughly $240 to $250 per share. BNP Paribas analyst Stefan Slowinski said Workday's 98% renewal rates, seat-based model, data moat, and potential for increased margins make it attractive for an acquirer, and the company is targeting the Rule of 35 metric by fiscal 2028, implying operating margins of around 23%. RBC Capital Markets analyst Rishi Jaluria said a deal could happen but is more likely a management-led buyout, given co-founder and CEO Aneel Bhusri and co-founder and CEO Emeritus David Duffield hold around 70% of the voting power. KeyBanc analyst Jason Celino said the deal makes sense, especially since Bhusri only returned as CEO earlier this year and was never thought to be a long-term solution.
Brown Advisory Exits Workday Stake After Management Changes Break Investment Thesis
Brown Advisory's Global Leaders Strategy sold its position in Workday during May after an eight-month holding period, citing a broken investment thesis. The exit was triggered by the CEO's departure and the reappointment of co-founder Aneel Bhusri, which led to an immediate moderation of margin targets and reduced discipline around stock-based compensation. These changes, combined with the need to ramp up investments amid increased competition from AI-driven challengers, prompted downward revisions to growth and margin estimates that no longer supported the fund's base-case IRR targets. The proceeds were reallocated to build a new position in Siemens Energy.
WDAY · Capital · Negative CEO departure and co-founder reappointment broke investment thesis, leading to margin target moderation and reduced discipline on stock-based compensation, prompting downward revisions to growth and margin estimates.
Brown Advisory · Capital · Negative Brown Advisory's Global Leaders Strategy sold its Workday position due to a broken investment thesis, reflecting a negative portfolio action.
ENR.XETRA · Capital · Positive Proceeds from Workday sale were reallocated to build a new position in Siemens Energy, indicating a positive investment decision.
Stocks Waver as Mixed Earnings and Chipmaker Rebound Offset Software Weakness
U.S. stocks were mixed on Thursday as a rebound in chipmakers and stronger-than-expected economic data helped offset a sell-off in software shares following disappointing earnings. The S&P 500 edged up 0.07%, the Dow fell 0.38%, and the Nasdaq 100 added 0.26%. Datadog tumbled over 14% after reporting second-quarter adjusted gross margin below consensus, dragging down other software names including Salesforce, Atlassian, and Workday. AppLovin sank 19% on a revenue miss, while memory chipmakers Western Digital and SanDisk fell sharply after SanDisk forecast first-quarter revenue of $10.30 billion to $10.80 billion, below the $11.16 billion consensus. Limiting losses, ARM Holdings rose more than 5% and ASML, ON Semiconductor, and Marvel Technology gained over 2%, while Paycom Software surged 22% after raising its full-year revenue outlook to $2.20 billion to $2.21 billion, above estimates. Weekly jobless claims rose by 1,000 to 199,000, better than the 205,000 expected, and second-quarter nonfarm productivity increased 1.4%, exceeding the 0.6% forecast. A Financial Times report that Fed Chair Warsh is willing to raise rates in September if inflation firms weighed on sentiment, while crude oil rose over 1% after Yemen's Houthi rebels said they targeted a Saudi oil tanker in the Gulf of Aden.
Insperity Rebounds on Earnings but Valuation Narratives Split Between Overvalued and Deeply Undervalued
Insperity reported second quarter 2026 earnings with modest sales growth, a return to quarterly profitability, fresh guidance, and new capital actions including share repurchases and a shelf registration. The stock has climbed strongly this year, posting a 77.39% three-month share price return and a 31.05% year-to-date return, though the five-year total shareholder return remains down 40.51%. The most followed valuation narrative pegs fair value at $43.75, labeling the stock overvalued at the latest close of $50.61, while a discounted cash flow model suggests a fair value of $166.67, implying deep undervaluation. The upcoming launch of Insperity HRScale, a joint solution with Workday targeting the mid-market segment, is expected to support higher revenue growth and improved operating leverage.
Stocks Mixed as Dow Rises on Earnings While Nasdaq Falls on Chipmaker Rout
U.S. stock indexes were mixed on Tuesday, with the Dow Jones Industrial Average climbing to a 1.5-week high while the Nasdaq 100 fell to a 2.75-month low. The Dow rose 0.738% and the S&P 500 edged up 0.05%, but the Nasdaq 100 dropped 1.12% as a deepening rout in chipmakers and AI-infrastructure stocks weighed on the market. Better-than-expected earnings from Coca-Cola and Sherwin-Williams provided support, while an unexpected decline in the Conference Board's July consumer confidence index to 90.8 added to cautious sentiment. The iShares Semiconductor ETF fell more than 5% to a 2.5-month low, with Sandisk down over 14% and Western Digital down over 13%. In contrast, software stocks gained, with Workday up over 7% and Thomson Reuters up over 6%.
Stocks Fall from Early Highs as Chipmakers Retreat
Stock indexes gave up early gains and are trading mixed, with the Nasdaq 100 falling to a 2.5-month low. The S&P 500 is up 0.11%, the Dow Jones Industrial Average is up 0.54%, and the Nasdaq 100 is down 0.46%. Weakness in chipmakers is weighing on the broader market as investors rotate out of semiconductor and AI-infrastructure stocks and into beaten-down sectors such as software. The iShares Semiconductor ETF is down more than 3%, with Sandisk down more than 11% and Advanced Micro Devices and Western Digital down more than 6%. Energy producers are also sliding amid a more than 6% decline in crude oil prices after the US and Iran held off attacks for a third straight day, easing geopolitical risks. Software stocks are rallying, with Workday up more than 8% and Atlassian up more than 7%, while airline and cruise line operators are climbing on the drop in oil prices.
ServiceNow stock jumps on strong revenue as company shrugs off AI disruption fears
ServiceNow shares gained 3% in early trading on Thursday after the company reported quarterly subscription revenue and bookings that topped analyst expectations. Subscription revenue climbed roughly 25% year over year to $3.88 billion last quarter, while current remaining performance obligations, a key metric of near-term bookings, rose 21% to $13.2 billion. Management highlighted that demand for the company's AI products continues to outperform expectations, citing broad customer demand, solid execution, and operating leverage. The results reinforced investor optimism that ServiceNow's artificial intelligence offerings are helping drive growth, even as the software industry faces scrutiny over AI disruption concerns. Shares of software peers including Salesforce, Snowflake, Adobe, and Workday also rose on Thursday, and the Tech-Software Sector ETF edged higher.
Stock Indexes Mixed Ahead of Alphabet Earnings as Energy Gains Offset Tech Weakness
U.S. stock indexes were mixed on Wednesday, with the S&P 500 down 0.09%, the Dow Jones Industrial Average up 0.10%, and the Nasdaq 100 down 0.29%, as markets awaited Alphabet's earnings after the close for signs that its artificial intelligence investments are generating returns. Alphabet plans to more than double capital spending from 2025 to as much as $190 billion this year. Energy producers and service providers rose alongside a more than 2% jump in WTI crude oil to a six-week high, while software and cybersecurity stocks declined, with Atlassian and Workday each falling more than 5%. The 10-year Treasury yield climbed to a two-month high of 4.66% amid rising oil prices and supply pressures from a $13 billion 20-year bond auction. Overseas, the Euro Stoxx 50 gained 0.55% to a two-week high, while Japan's Nikkei 225 slipped 0.18%.
Artificial Intelligence › AI Data Center & Build-out ▲Capital
GOOG · Capital · Neutral Alphabet plans to more than double capital spending to up to $190 billion this year, with earnings awaited for signs of AI investment returns.
TEAM · · Negative Software and cybersecurity stocks declined, with Atlassian falling more than 5%, but no company-specific cause given.
WDAY · · Negative Software and cybersecurity stocks declined, with Workday falling more than 5%, but no company-specific cause given.
Chipmaker Rebound Lifts S&P 500 and Nasdaq as Earnings Season Begins
U.S. stocks rose on Monday, with the S&P 500 up 0.64%, the Dow Jones Industrial Average up 0.47%, and the Nasdaq 100 up 1.58%, as a rebound in chipmakers and AI-infrastructure stocks gathered pace. The iShares Semiconductor ETF gained more than 4%, with Teradyne and Western Digital up more than 11%, and Micron Technology and Seagate Technology up more than 9%. The rally comes ahead of megacap technology earnings this week, starting with Alphabet and Tesla on Wednesday, while Bloomberg Intelligence forecasts suggest second-quarter earnings may increase by 23%, with AI infrastructure stocks contributing nearly 60% of the S&P 500's earnings-per-share growth. Software stocks fell after Morgan Stanley downgraded Adobe, Intuit, and Workday, and rising crude oil prices pushed the 10-year Treasury yield to a two-month high of 4.64%. WTI crude oil rose more than 2% to a five-week high as the U.S. and Iran exchanged strikes for a tenth consecutive day, and Houthi rebels threatened a maritime blockade on Saudi Arabia.
ADBE · Capital · Negative Morgan Stanley downgraded Adobe, causing software stocks to fall.
INTU · Capital · Negative Morgan Stanley downgraded Intuit, causing software stocks to fall.
TER · Demand · Positive Chipmaker rebound and semiconductor ETF rally, with Teradyne up >11% as AI infrastructure demand drives earnings growth.
WDAY · Capital · Negative Morgan Stanley downgraded Workday, causing software stocks to fall.
WDC · Demand · Positive Chipmaker rebound and semiconductor ETF rally, with Western Digital up >11% as AI infrastructure demand drives earnings growth.
MU · Demand · Positive Micron Technology rose more than 9% as part of a chipmaker rebound ahead of AI-driven earnings growth.
Stocks Gain as Chipmakers Rebound Ahead of Megacap Earnings
U.S. stock indexes climbed on Tuesday as a rebound in chipmakers and AI-infrastructure stocks gathered pace. The S&P 500 rose 0.38%, the Dow Jones Industrial Average added 0.17%, and the Nasdaq 100 jumped 1.26%. Chipmakers rallied after a recent selloff cheapened valuations, drawing dip buyers ahead of megacap technology earnings this week, starting with Alphabet on Wednesday. Software stocks were weak after Morgan Stanley downgraded several companies in the sector, including Adobe, Intuit, and Workday. Hasbro surged more than 10% after reporting better-than-expected quarterly revenue and raising its full-year adjusted Ebitda forecast, while 3M gained over 8% on stronger earnings and an improved outlook. Danaher fell more than 13% after issuing a weaker revenue growth forecast, and MSCI dropped over 10% on an earnings miss and higher expense guidance.
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